Fidelity High Yield Savings Review
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Fidelity boasts an all-around account with no fees and a decent APY. But there's even more to discover. Keep reading.
Overall Score | 4.0 | ||
Savings | 3.0 | ||
Fees | 5.0 | ||
Mobile App | 4.0 | ||
Customer Service | 4.0 | ||
Pros and Cons
- $0 monthly service fee
- No minimum balance
- Free debit card
- Relatively low APY
- Few physical branches
Bottom Line
Cash management account with a decent APY
Fidelity is a popular firm with various financial products and services. That includes a multi-purpose Cash Management Account with an adequate rate and great accessibility.
But is that all there is to it? Learn more about this high-yield savings account from Fidelity.
Does Fidelity Have a High-Yield Savings Account?
Fidelity currently does not have a high-yield savings account. In fact, it is not a bank but a brokerage firm so it does not offer typical deposit products.
Instead, Fidelity offers a Cash Management Account that pays a better-than-average rate.
What is Fidelity Cash Management Account?
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Fidelity's Cash Management Account is a brokerage account that consolidates your spending, savings, and investing in one convenient location.
It allows users to earn 2.72% APY on all balances. And, it has $0 account fees and no minimum balance, giving you more flexibility to save and spend your money.
Fidelity: Cash Management Account
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: 2.72%
- ATMs: Unlimited ATM fee rebates in the US
Although it is not a traditional savings account, you can receive FDIC insurance through Fidelity's FDIC-Insured Deposit Sweep Program.[1]
Upon opening an account, your cash balance is distributed into interest-bearing accounts among their FDIC-insured partner banks.
You can get higher coverage than in a regular checking or savings account since your money is split into multiple banks, each giving you up to $250,000 coverage on your deposits.[2]
How Much Can You Earn?
Use this calculator to see how much your money can grow with Fidelity's Cash Management Account.
Other Features of Fidelity Cash Management
The Fidelity Cash Management account combines various financing features into one. Here's what you can do with this account:
- Manage your transactions and pay bills Fidelity's mobile app
- Mobile check deposits
- Access to ATMs globally with your debit card
- Unlimited ATM fee reimbursements
- Access various investment options for short-term and long-term goals
Not really. Fidelity's Cash Management account is a brokerage account that combines the features of a checking account, a savings account, and an investment account into one product.
Fees to Look Out For
Fidelity's Cash Management Account virtually has no fees for you to worry about. Here's a rundown:
- $0 monthly charges
- No opening deposit
- No minimum balance requirement
- Unlimited ATM fee reimbursements
Pros and Cons
Pros
- $0 monthly maintenance fees
- No minimum balance requirement
- Complimentary debit card
- Worldwide ATM access
- Unlimited ATM fee reimbursements
Cons
- Relatively low APY at 2.72%
- Limited physical branches
How to Open an Account?
Here's a simple step-by-step process on how to open a Fidelity Cash Management Account:
- Visit Fidelity's official website, select "Open an Account," and choose Cash Management Account.
- Fill out the online application form.
- Set up your account login details if applicable.
- Fund your account via direct deposit, mobile check deposit, or electronic funds transfer.
Yes, you can withdraw cash from your Fidelity Cash Management Account because it comes with a debit card that you can use globally.
Who Is It Best For?
Fidelity's Cash Management Account is best for individuals who want a spending account and a savings account in one convenient location.
It can provide great accessibility since it comes with a debit card and a simple mobile banking platform. You also earn a modest APY on your cash balance, allowing you to grow your funds passively.
This is also suitable for people with extra funds. You can deposit more money knowing that Fidelity allocates your money to multiple FDIC-insured banks which can get you increased coverage.
Is Fidelity Safe?
Yes, it is. Cash balances in your Fidelity Cash Management account are put into FDIC-insured, interest-bearing accounts at one or more partner banks. Thus, your deposits are covered up to $250,000 per insured bank.[3]
However, note that balances of over $5 million will be moved into a Money Market Overflow account with no FDIC insurance coverage but are eligible for SIPC coverage under SIPC rules.[4]
But remember that Fidelity is not a bank and that this is a brokerage account. Only cash balances are eligible for FDIC insurance.
How It Compares to Other Banks
High-Yield Savings Premier - 5.36% APY
- No account activity or maintenance fees
- $500 minimum opening deposit
- FDIC insured
CIT Bank Platinum Savings - 5.05% APY
- 5.05% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
UFB Secure Savings - Earn up to 5.25% APY
- Earn up to 5.25% APY*
- No monthly maintenance fees
- No minimum deposit required to open an account
- Access your funds 24/7 with easy-to-use digital banking tools
Bottom Line
The Fidelity Cash Management Account is a perfect three-in-one product with spending, saving, and investing features.
Users can earn some interest while having easy access to their funds. You can also enjoy limitless ATM fee reimbursements and increased FDIC insurance coverage.
If any of this sounds appealing to you, check out Fidelity's Cash Management Account.
References
- ^ Fidelity. Cash Management Account FDIC-Insured Deposit Sweep Program Disclosure, Retrieved 10/18/2023
- ^ Fidelity. Cash Management Account Program Banks, Retrieved 10/18/2023
- ^ Fidelity. FAQ: Is the Fidelity Cash Management Account eligible for FDIC insurance coverage, and how does it work?, Retrieved 11/10/2023
- ^ Fidelity. Safeguarding Your Accounts, Retrieved 11/10/2023
Free Gold IRA Kit
- Up to $10,000 in free silver for eligible customers
- Highest buyback price, guaranteed
- Endorsed by Sean Hannity and Chuck Norris
$20 Investment Bonus
- Open an Acorns account (new users only)
- Set up the Recurring Investments feature
- Have your first investment be made successfully via the Recurring Investments feature
Write to Darlene Santos at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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